• EUR/AUD initially gained on Tuesday but gave up ground after data showed Euro zone inflation eased last month.
• Consumer inflation in the 20 nations sharing the euro currency slowed to 2.5% in June from 2.6% a month earlier, in line with expectations in a poll of economists.
• The euro erased Monday’s gains against the Australian dollar , the pair was last down at 0.08% at 1.6114
• Technical signals show the pair could lose more ground in the short-term as RSI is at 43 bearish, daily momentum studies 9, 10 and 11 DMAs are trending down.
• Immediate resistance is located at 1.6155 ( 38.2%fib), a close above will push the pair towards 1.6205 (23.6%fib).
• Support is seen at 1.6113(50%fib) and break below could take the pair towards 1.6064 (61.8%fib).
Recommendation: Good to sell around 1.6120, with stop loss of 1.6330 and target price of 1.6040.
